The VA mortgage loan guidelines also allow for more than one eligible veteran(s) to purchase a home. If a married couple with more than one eligible veteran is involved, VA divides the entitlement charge equally between them, if possible. If two unmarried eligable veterans purchase property together the same rules apply and these loans can be fully guaranteed by the VA.

While the VA guidelines may allow for a non-veteran to co-sign for a mortgage loan, they will not fully guarantee the loan, and in our 25 years of lending, we’ve never seen one of these loans close. Again, the VA mortgage loan was designed to offer long-term financing to American veterans or their surviving spouses (provided they do not remarry).

Although it seems more confusing than it is, the federal government does not generally make direct loans under the act. The government simply guarantees loans made by ordinary mortgage lenders (descriptions of which appear in subsequent sections) after veterans make their own arrangements for the loans through normal financial circles. The Veterans Administration then appraises the property in question and, if satisfied with the risk involved, guarantees the lender against loss of principal if the buyer defaults.

In the case of divorce, the Veterans Administration has several choices. If a non-eligable spouse continues to occupy the property and if the payments are made in a timely fashion, no change to the loan will be made.  In this case, the military spouse will have their eligability for a mortgage re-instated once the loan is paid off and/or refinanced out of a VA loan.  If payments are missed, and the property is approaching foreclosure, the VA might choose to refund the loan and have the payments made directly to the Veteran’s Administration.

For more information about purchasing a home in Raleigh with VA Financing or buying a home in Cary as a Veteran, please contact Steve and Eleanor Thorne with First Financial Services in Cary, NC.  919-649-5058

Again, two unmarried military members are able to co-sign on a VA loan with full benefits. When a military member or veteran wants to bring an unrelated, non-military cosigner, the VA allows this with one major exception.

The VA Mortgage Loan guarantee is limited to the amount of the veteran’s interest in the property. Some companies won’t allow these types of “mixed” loans, so you are likely better off getting an FHA loan!

For more information about qualifying for a VA Mortgage Loan, please click here!

If you have questions about these and other homebuying options – contact Steve and Eleanor Thorne, Government Loan Experts at First Financial Services!

Call us at 919-649-5058 – we LOVE working with Veterans!

Washington Report: VA Loans for Veterans Overlooked

On Capitol Hill, it’s known as the biggest goof-up relating to housing in years: Working with the White House, Congress passed a bipartisan $150 billion stimulus bill that raised mortgage limits for home buyers in high cost areas across the country.

But guess what? The stimulus increased loan maximums for Fannie Mae, Freddie Mac and the FHA to $729,750 from the previous $417,000, but totally forgot about a program that helps finance more than 11,000 homes a month: VA loans for veterans. ”

This is a fine time to say “Oooops!”  If you are a veteran who wants information about qualifying for a new home – please let us help you.  Not many people in this area are familiar with VA loans, because we are not located 15 minutes from base – but as “veterans” of this business, Steve and Eleanor totally understand VA loans and the paperwork that goes with them! (It’s a government program – trust me on this there’s a ton of paperwork!)

“We just blew it, we didn’t catch it,” said one committee staff member who is not authorized to speak publicly.   So for now, the VA limit for 100% financing remains $417250. (which buys a beautiful home right here in the Carolinas!)

For more information on VA LOANS:  Contact Steve and Eleanor Thorne, First Financial Services, 919-851-3031.